WHAT IS CORPORATE WELFARE AND WHAT ARE ITS BENEFIT EFFECTS?

Corporate welfare is a system of benefits and initiatives aimed at improving the well-being of the worker and his family.

And it is a decisive tool in promoting a serene and productive business climate.

In addition to creating an ideal situation in the workplace, with the increase in employee efficiency and the consequent growth of production.

Corporate welfare has acquired a great deal of importance for public employees, for businesses and, moreover, for the state.

In fact, the more the works are covered, the lower the risk of intervention by the community.

Given that it is particularly important in difficult times such as financial crises and an aging population.

Taking care of the well-being of collaborators and employees is understood by companies as a fundamental factor for a healthy and fruitful activity.

Corporate welfare is an essential tool because it increases its purchasing power and also acts so that employees are able to better manage the balance between work and private life.

If the climate in the workplace improves, consequently absenteeism and turnover decrease.

The bonus system can concern remuneration, a service or a solution that combines the two solutions.

These are services or benefits that improve the employee’s quality of life. But let’s see in more detail what it is.

 

CORPORATE WELFARE: WHAT BENEFITS FROM BONUSES?

The benefits of corporate welfare are considerable, and have positive consequences on both sides, both for the employer and for the worker .

If the company is able to best meet the needs of the employee, he will feel in a condition of physical and psychological well-being and will produce more.

This is also reflected in employers , who will see greater loyalty from their employees, more motivated and satisfied.

Not only that, there are also advantages from a fiscal and economic point of view.

On the one hand the workers benefit from a series of bonuses and, on the other hand, the company saves, for example, on the costs of new hires, by decreasing turnover.

 

HOW TO PLAN A GOOD PLATE OF CORPORATE WELFARE?

The company must, first of all, analyze the costs and understand what investments it can make to implement an adequate welfare program.

Then he will have to carefully study the needs of his employees. It will analyze the various information available regarding sex, age, interests, habits, family situations.

All this will be essential to outline a starting point and develop a detailed project. Better if the analysis makes use of the help of workers, to understand any needs and make the most appropriate benefits available.

In the event that the employer does not involve their employees in this research, it may not achieve the desired results. The bonuses, in fact, must also be assessed on the basis of the workers’ needs.

Once the correct benefits have been identified, we move on to the creation of a set of services made available to workers.

This is usually done through a web platform that groups together all the bonuses available to which the employee can access.

The amounts allocated to welfare can be linked to performance bonuses linked to company performance. Also studied on the basis of profits, productivity increase and image improvement. Or evaluated on the basis of contractual conditions.

It may also happen that, sometimes, certain categories of workers are taken into consideration and not all of them. In creating a corporate welfare plan, the aim must be to identify the economic convenience of the activity.

But let’s get to the point and let’s see what are the benefits provided by corporate welfare.

 

WHAT ARE THE BONUSES RELATING TO CORPORATE WELFARE?

After understanding the needs of its employees, the company will develop a reasoned welfare plan, signing agreements with service providers.

The bonuses related to corporate welfare can include various areas such as:

  • Kindergartens, nursery schools, subsidies for school books.
  • Additional welfare services and forms of pension.
  • Agreements with bars, restaurants, shops, games rooms.
  • Petrol vouchers, psychological assistance.
  • Language courses, training and refresher courses, company parties, trips, trips, summer camps for the children of employees.
  • Concessions on mortgages, loans, transport vouchers.
  • Coffee, snack, cinema tickets, theater and exhibitions.

BEYOND THESE, OTHER BONUSES MAY BE MADE AVAILABLE

For example, scholarships for employees’ family members, or additional care services for elderly family members who are unable to look after themselves.

Fringe benefits are also part of the company welfare bonuses, and can relate to numerous benefits, including the use of the car and the company telephone.

Sometimes it also happens that companies choose to transform employee productivity bonuses into corporate welfare services.

Let’s focus now on the platform on which all conventions can be brought together, let’s see specifically what it is.

 

THE BONUS PLATFORM

Another useful step for corporate welfare may be to design and create a platform accessible to employees.

The company can decide to carry it out with its own means or entrust the task to professionals.

The aim is to make it easier for you to view, learn and choose the bonuses available.

The virtual space created must have some characteristics that facilitate access for workers. First of all the simplicity of use.

A performing platform must allow the choice, consultation and booking of services. In addition to monitoring movements and providing the necessary assistance to users.

 

WHAT DO EMPLOYEES OF CORPORATE WELFARE BONUSES THINK?

The benefits of corporate welfare are often a hot topic.

To these, many would prefer to translate the bonus into an increase in paychecks, which is proportional to the cost of the services made available.

This solution appears to be the ideal solution for most employees.

In any case, it would represent a benefit related to corporate welfare.

And workers would be given the opportunity to spend that money however they like.

In reality, however, this is not the case, since an increase in the paycheck would represent an increase in monthly income.

Furthermore, the additional amount would be allocated to the purchase of basic necessities, therefore at ordinary expenses.

And not to additional services, which is what the bonuses were meant for.

 

WHAT HAPPENS IN THE TAX AREA?

The various forms of remuneration in the field of corporate welfare benefit from tax incentives defined by the TUIR . Such as, for example, pension funds, supplementary health and risk policies. Incentives extended by the Budget Laws.

The productivity or result bonuses are due to all those workers who have participated in the increase in production and profit of the company, achieving efficient results.

They are subject to some tax breaks, but only in the private sector, while in the public one there is no tax relief.

A 10% substitute IRPEF tax is applied to performance bonuses up to € 3,000, a figure raised to € 4,000 if the worker actively intervened in increasing productivity.

If the premium, on the other hand, is transformed into a service or good falling within the corporate welfare, then it is subject to any type of taxation.

The assets that can be converted into corporate welfare are: cars, low-interest loans, housing, transport services. And, again, health care and social security, canteen services, actions, education services, asylum fees …

All employees, of all levels, can benefit from these concessions. The only peculiarity concerns their income, which must not exceed the threshold of € 80,000, raised in 2017. Previously it amounted to € 50,000.

 

The L BEING FIRST OF ALL

We can therefore conclude by saying that corporate welfare bonuses are useful for identifying.
And, also, to achieve a status of working well-being for the employees of a company.

They contribute to achieving a balance between professional and private life.

 

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